The Effect of Organizational Culture on Firm Performance With Social Responsibility as Mediating Variable

Abstract

There is a lack of state-owned enterprises (SOEs) and regional-owned enterprises (ROEs) of Indonesia in reporting their social responsibility activities to the provincial governments. At the same time, corporate social responsibility is a mandatory obligation outlined in the Indonesia law. This study aims to analyze the mediating effect of social responsibility in relationship organizational culture and firm performance of SOEs and ROEs in Central Sulawesi Province, Indonesia. This study is survey research by distributing questionnaires to respondents who are SOEs and ROEs employees. The total sample is 245 respondents. The data are analyzed using path analysis. The result of this study shows that organizational culture does not affect firm performance partially. Another finding shows that SOEs and ROEs' organizational culture affects firm performance if the firm does and reports corporate social responsibility. These results mean that social responsibility plays a vital role in increasing firm performance besides focusing on improving organizational culture.